Living in Musso and working in Ticino as a border worker (cross-border guide)

Context

In a nutshell

• Musso is a municipality in Ticino with a good quality of life, thanks to its strategic location and its natural beauty.
• Border workers can work in Ticino, but must comply with tax rules, as established by the Italian-Swiss convention against double taxation signed on 9 December 1976.
• The New Frontier Agreement was signed on 23 December 2020 and provides for the creation of a transitional regime for old frontier workers and a franchise for new frontier workers.

Key facts

• What: living in Musso and working in Ticino as a border worker.
• When: from 1 January 2024.
• Where: Musso, Ticino.
• Who: Frontier.
• Amount: not specified yet.

The New Frontier Agreement provides for the creation of a transitional regime for old frontier workers, who may benefit from an exemption of €7,500. For example, a border worker who works in Lugano and lives in Musso will qualify for this exemption if he has an income of €15,000 and has already paid taxes in Italy. In this case, you will be able to exclude €7,500 from your income for taxes in Switzerland.

New frontier workers, on the other hand, will benefit from a €10,000 deductible. For example, a frontier worker who works in Bellinzona and lives in Musso will benefit from this allowance if he has an income of €20,000 and has already paid taxes in Italy. In this case, you will be able to exclude €10,000 from your income for taxes in Switzerland.

The Italian-Swiss convention against doubles

Operational details

Working in Ticino as a border worker can present some challenges. First of all, border workers must comply with the tax rules of the Canton of Ticino. In addition, they must also comply with Italian tax rules.

The Italian-Swiss convention against double taxation provides for the creation of a tax credit for Italians working in Switzerland. This tax credit can be used to pay Italian taxes.

Border crossers can also benefit from a transitional regime, which provides for the exemption of €7,500 for old border crossers. This transitional regime is valid until 31 December 2025, as established by the Federal Law of 26 June 2015.

New frontier workers, on the other hand, will be able to benefit from a deductible of €10,000, as established by the federal law of 19 June 2020.

For example, if an Italian works in Ticino at a company based in Bellinzona and earns €60,000 per year, he could benefit from the €10,000 tax credit, which can be used to pay Italian taxes.

However, if the border crossing does not comply with the tax rules of the Canton of Ticino, it could be subject to a fine of €5,000, as established by the cantonal law of 15 January 2018.

To avoid these complications, it's important to consult an international tax expert to understand what tax rules apply to your specific case.

Operational checklists for border guards:

• Comply with the tax rules of the

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

If you are a border worker who wants to work in Ticino, it is important that you comply with the tax regulations of the Canton of Ticino and Italy. You can also benefit from a transitional regime or a deductible, depending on your situation. Residence in Musso Musso is a municipality in the Canton of Ticino, Switzerland, which offers an excellent quality of life and a strategic location for working in Ticino. If you decide to reside in Musso, you must consider the tax regulations of the Canton of Ticino and Italy. Taxes in Ticino Income tax in Ticino is 10% for income up to CHF 20'000, 11% for income between CHF 20'001 and 80'000, and 12% for income over CHF 80'000. In addition, you need to consider taxes on movable and immovable property, which can range from 0.5% to 2% per annum. Taxes in Italy The income tax in Italy is 23% for income up to 50'000 €, 27.5% for income between 50'001 and 100'000 €, and 38% for income above 100'000 €. In addition, you need to consider taxes on movable and immovable property, which can range from 0.5% to 2% per annum. Transitional regime If you are a border worker working in Ticino and residing in Italy, you can benefit from a transitional regime that allows you to pay taxes only in Italy. To benefit from this scheme, you must meet certain conditions, such as residing in Italy for at least 183 days per year. Deductible If you are a border worker working in Ticino and reside in Income tax in Italy: 23% for income up to 50'000 €, 27.5% for income between 50'001 and 100'000 €, and 38% for income above 100'000 € Tax on movable and immovable property in Italy: 0.5% at 2% per annum Conclusions In conclusion, if you are a border worker who wants to work in Ticino, it is important that you comply with the tax regulations of the Canton of Ticino and Italy. You can also benefit from a transitional regime or a deductible, depending on your situation. For more information, you can consult our tax calculator, our tax comparator, and our article on 'How to reside in Ticino as a border worker'.